Trial home loan modifications from Citigroup saw a decrease according to the most recent Making Home Affordable reports, as the overall modification program has shown signs of slowing down, due to the fact that the trial modifications have dropped for numerous servicers, and the modification program as a whole. There are concerns that servicers may not be properly implementing the program to a point that will offer homeowners the best chance at a modification, but there are some who feel that these financial institutions are simply participating in a program that needs to be restructured.
Citigroup has seen increases in the number of permanent modifications they have made over the past months, and again, most recent reports have stated they once more saw a rise in the number of active permanent modifications. However, the December 2010 HAMP report stated that Citigroup had a 7,415 active trial modifications in place, but the January 2011 report stated that this number had dropped to 5,897 active trial modifications. Yet, there are some indications that servicers are transferring these trial modifications to smaller servicers, which may not be reported in the Making Home Affordable program or there are some officials who state that the homeowners who may have had their trial modification canceled can be reintroduced into the modification program if they resubmit paperwork.
Obviously, there are those who feel that the modification program needs to be greatly restructured and, as a result, should be tailored in a way that will allow more homeowners to benefit from these reduced mortgage payments, yet there are still many homeowners who are placing the blame for these troubles on the shoulders of these financial institutions that are being charged with the implementation of HAMP.
There are numerous stories from homeowners having an incredibly difficult route to a trial modification, as paperwork issues and unaffordable monthly payments are two of the main grievances which homeowners have expressed. Yet, Citigroup is, again, one of the servicers that did see an increase in their permanent modifications, which many feel to be a positive as there are homeowners still finding aid from the federal modification initiative.
There are those who feel that the program is more of a hindrance than a help, though, as the total number of homeowners that was hoped to be helped initially is far from being reached. Arguments in support of the program continue to center around the fact that there are homeowners finding foreclosure prevention, despite the numbers being low and conversions reportedly slowing, but as to whether the program will be terminated may be determined in the coming weeks as legislation to end the various homeowner assistance programs has been proposed and will likely be voted on this week.
Yet, homeowners may still contact their servicer or a Making Home Affordable housing counselor for either advice on home loan affordability issues, information on alternative programs that may help homeowners avoid foreclosure, or as a way to begin the modification process within the Making Home Affordable Program with their servicer.